A mortgage company asks a licensing coordinator to validate a New York company policy update involving licensing and NMLS authority. Which statement is reliable?
Correct Answer
D) New York Article 12-D regulates mortgage servicer registration and servicing activity, with exemptions for specified depository institutions and insurance companies as defined by statute and DFS guidance.
New York Article 12-D regulates mortgage servicer registration and servicing activity, with exemptions for specified depository institutions and insurance companies as defined by statute and DFS guidance.
Why This Is the Correct Answer
New York Article 12-D regulates mortgage servicer registration and servicing activity, with exemptions for specified depository institutions and insurance companies as defined by statute and DFS guidance.
Why the Other Options Are Wrong
Option A: Treat consumer consent as a cure for a prohibited or missing compliance step.
Treat consumer consent as a cure for a prohibited or missing compliance step. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option B: Treat the timing or filing requirement as optional if the transaction appears low risk.
Treat the timing or filing requirement as optional if the transaction appears low risk. is not correct because the governing rule requires the compliant answer shown in the explanation.
Option C: Assume the New York requirement does not apply to this advertising approval.
Assume the New York requirement does not apply to this advertising approval. is not correct because the governing rule requires the compliant answer shown in the explanation.
Memory Technique
NY -> ny-article-12d-mortgage-bankers-brokers-servicers-reports
Exam Tip
Article 12-D questions often test banker license versus broker registration, mortgage-loan definitions including co-op collateral, branch/control changes, servicer registration, guidebook procedures, and record/report duties.
Common Mistakes to Avoid
- -Using generic federal mortgage facts when New York DFS or Banking Law rules are being tested
- -Confusing Article 12-D company authority with Article 12-E individual MLO authority
- -Treating New York high-cost, subprime, reverse mortgage, MCR, unique identifier, or surety bond rules as optional
More UST Questions
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